North York Moors Railway is to shed jobs after a dramatic drop in passengers this year due to the-foot-and mouth disease outbreak.

Chairman Roger Heath said up to 10 jobs are likely to be axed by the railway which employs 80 permanent staff plus 40 seasonal staff in summer. He added that increased running costs have also affected the railway.

"The FMD outbreak hit us hard. We lost 14,000 passengers which cost us £125,000 in income. In addition our coal bill went up 40 per cent because the fuel was being used to burn carcasses".

The blow comes hard on the heels of last year's setback when the 18-mile railway which runs from Pickering to Grosmont suffered three landslips costing some £250,000 to repair.